The Securities and Exchange Board of Indias (SEBI) Mutual Fund Advisory Panel has recommended strict definitions on how mutual funds are categorised, a move that might halve the number of schemes offered by asset managers currently, reported a leading news agency.

India's Rs 20 lakh crore mutual fund industry is in a wait and watch mode with fingers crossed fearing imposition of regulations regarding merger of schemes. The mutual fund advisory panel, appointed by the Securities and Exchange Board of India (Sebi) is due to meet on Friday amid ripen expectations that fund houses may not enjoy the luxury of continuing with multiple schemes in the same category.Currently, there are about a massive 2,041 mutual fund schemes offered by 40 mutual fund houses. This essentially means one fund house offering 50 schemes, on an average. The regulator is of the view that these many schemes are too much for investors to understand, differentiate and choose from. Further, it has opined that there are various schemes in the same category and hence duplication of funds, making investors confused.Sector officials agree that more than adequate time was given to the sector for the same to follow. "Sebi had been suggesting this for years now, politely while ...